Distribution, Manufacturing, and Internet Modules

[Kerry]

I would appreciate any words of wisdom in this process.   We thinking of starting to use Receipt of Invoice on purchase orders which brings many benefits.  However, we now have the switch over from doing the invoicing in the Accts Payable module.   Some of our Purchase Orders are partially paid prior to shipment, so all of these would be caught in the switch over.  The Purchase Order would never close if part of it was invoiced & paid in Accts Payable, and the rest was invoiced in Receipt of Invoice, right?   If so, how have any of you overcome this? (I hope I explained this properly). 

[Cblack]

Kerry,

Based on what you said, it would seem that you should identify the amounts for each PO that was paid in advance and then do two things:  1)  record a journal entry to move this amount in total to a Prepaid Assets type account and 2) record a prepayment amount against each PO.  This should take care of the ones that were paid in advance as prepayments should be handled.  There is no mention of inventory or receipts of goods.  Do you have to consider these in this process?

[Kerry]

Here are the scenarios:

1) A partial prepayment is made to our overseeas manufacturers as a deposit for the goods.   There was no receipt of goods as of that time.

2) A full prepayment is made but no Receipt of goods.

3) A partial receipt of goods happens, and an invoice for what was shipped will be issued to us

Does that help?
Kerry.

[BigLouie]

If you use Purchase Order Receipt of Goods then you must use Purchase Order Receipt of Invoice otherwise 1) the purchase orders will never close 2) the Purchases Clearing Account will do nothing but grow and will create a GL nightmare.

It would be my strong suggestion to work with your reseller on your process.